Analysis of Sales Promotion Effects on Household Purchase Behavior

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High need-for-cognition (NFC) individuals are intrinsically motivated to engage in cognitive endeavors. They are more likely to process additional issue-relevant information than are individuals who are low in NFC. Thus, high NFC individuals are more likely to take the central route and low NFC individuals are more likely to take the peripheral route. Petty and Cacioppo (1986) demonstrated the interaction between NFC and the cognitive route taken. High-involvement consumers are active information seekers and processors, whereas low-involvement consumers rarely seek information, and process it passively when provided. High-involvement consumers evaluate brands in detail before purchasing and then assess their satisfaction with the product afterwards. Low-involvement consumers buy first and then may or may not evaluate the product after use. <strong>Promotion</strong>s can influence both high and low-involvement decision-making. Low involvement consumers may go to the store with the knowledge that he or she needs to purchase from the product category, but an in-store promotion will then determine which <strong>of</strong> several acceptable brands is bought (Desphande et al. 1982). The central route is more time consuming than the peripheral route. Therefore, time available moderates the cognitive route taken. Another important process that takes place in consumer decision-making is the relationship between intention and choice. There is a difference between the intention to buy a product and the actual purchase. A promotion can act as an unanticipated circumstance and cause a different brand to be purchased than intended. On the other hand, a promotion can make it more convenient for a consumer to follow through on intentions. This research is focused on household purchase behavior within FMCG. Lowinvolvement purchase decisions resulting in a peripheral decision-making process point out that the role <strong>of</strong> sales promotions is quite powerful. <strong>Promotion</strong>s can serve as time-saving decision-making tools. 2.3.4 Deal Proneness A lot <strong>of</strong> sales promotion research makes use <strong>of</strong> trait theory, assuming that promotion response is general across different environmental situations (i.e., across time and product 37
categories). The concept <strong>of</strong> deal proneness (the psychological promotion sensitivity trait) is dealt with more in depth in this section. More specifically, this section deals with deal proneness as a construct, and the different ways <strong>of</strong> defining and applying the construct in prior research. 2.3.4.1 The Concept Managers and researchers alike have spent considerable effort trying to identify and understand the ‘deal-prone’ consumer. Blattberg and Neslin (1990) proposed the following definition for deal proneness, drawing from previous work: Deal proneness is the degree to which a consumer is influenced by sales promotion, in terms <strong>of</strong> behaviors such as purchase timing, brand choice, purchase quantity, category consumption, store choice, or search behavior. Equivocal and haphazard application <strong>of</strong> this concept is inevitable using terms as “influenced” and “degree”. Prior studies have adopted different conceptualizations, definitions and operationalizations <strong>of</strong> deal prone buyers, which hampers comparison. Characterization <strong>of</strong> the deal-prone consumer will contribute to the understanding <strong>of</strong> consumer behavior in general (Webster 1965). Comparing different operationalizations and measures <strong>of</strong> deal proneness may provide refined insights in, and understanding <strong>of</strong> the influence <strong>of</strong> sales promotions on consumer purchase behavior. These insights become more and more important, given the fact that in recent years, consumer sales promotions have played an increasingly important role in the promotional strategy <strong>of</strong> many businesses. As mentioned before, high levels <strong>of</strong> advertising clutter and rising media costs have prompted many businesses to allocate larger shares <strong>of</strong> their promotional budgets away from advertising and toward consumer sales promotions (Shimp 1990). Because <strong>of</strong> this trend, a considerable amount <strong>of</strong> research has been undertaken in an attempt to identify and understand the deal-prone consumer (e.g., Lichtenstein et al. 1990, 1995, Schneider and Currim 1991). However, results <strong>of</strong> deal proneness studies have been modest and conflicting (Henderson 1987). 38
Page 1 and 2: LINDA H. TEUNTER Analysis</
Page 4 and 5: Analysis o
Page 6 and 7: Voorwoord Soms valt de appel echt n
Page 8 and 9: Contents 1 INTRODUCTION AND OVERVIE
Page 10 and 11: 5.4.2.3.1 Inter Purchase Time .....
Page 12 and 13: 1 INTRODUCTION AND OVERVIEW 1.1 Int
Page 14 and 15: generally generated from a smaller
Page 16 and 17: switching, purchase acceleration, c
Page 18 and 19: strategy change (decrease in promot
Page 20 and 21: of promotions, or
Page 22 and 23: characteristics are important in ex
Page 24: Chapter 5 are applied to study the
Page 28 and 29: 2 THEORIES OF CONSUMER BUYING BEHAV
Page 30 and 31: systematically explored the decisio
Page 32 and 33: the part of the co
Page 34 and 35: As mentioned before, Figure 2.3 is
Page 36 and 37: product use coupled with the import
Page 38 and 39: 2.3.2 Stimulus-Response Model Appli
Page 40 and 41: 2.3.2.2 Operant Conditioning In ope
Page 42 and 43: X is very popular that it will brin
Page 44 and 45: But, in contrast, economic theory c
Page 46 and 47: compared to a perceived benchmark -
Page 50 and 51: 2.3.4.2 Literature Overview Our rev
Page 52 and 53: The previously described research h
Page 54 and 55: has its deficiencies. Any purchase
Page 56 and 57: Chandon et al. 2000). But deal pron
Page 58 and 59: 2.4 Concluding Remarks Regarding th
Page 60: stimulus-organism-response model) c
Page 63 and 64: Shoemaker 1987). Several factors ha
Page 65 and 66: such as display promotions. Althoug
Page 67 and 68: 3.2.3 Type of resi
Page 69 and 70: 3.2.5 Education Education links to
Page 71 and 72: these advantages therefore could be
Page 73 and 74: less likely to seek variety. More e
Page 75 and 76: 3.3.1 Store Loyalty Store loyalty s
Page 77 and 78: more often (probab
Page 79 and 80: Table 3.12 continued Hypothesis H9a
Page 81 and 82: 4.2.1 Brand Switching Brand switchi
Page 83 and 84: involvement purchases for most cons
Page 85 and 86: Neslin (1998), there is a great nee
Page 87 and 88: are called “attributions.” Attr
Page 89 and 90: and less than 2 percent by stockpil
Page 91 and 92: into a unit sales decomposition and
Page 93 and 94: 4.3.4 Storability/Perishability Sto
Page 95 and 96: Economic theory ignores mental deci
Page 97 and 98: seeking (cf. Assael 1987, Desphande
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there another factor that is relate
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Pr(event) 90 = 1+ 1 z e − Here Z
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5.4.2 Sales <stron
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It represents the fraction
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96 We measure possible time acceler
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promotional post-promotional purcha
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( 12) CategoryExpansion effect : 10
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PART II EMPIRICAL ANALYSIS 103
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more persons living together and di
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6.4 Linking Household and Store Dat
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Table 6.1 contains the results <str
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The age of the sho
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Table 6.4: Frequency distribution <
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7 EMPIRICAL ANALYSIS ONE: DRIVERS O
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Table 7.1: Operationalization <stro
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during 435 shopping trips more than
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The variables size, age, and cycle
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7.5 Results Drivers of</str
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esponsive the households within tha
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Table 7.3: Relationship promotion r
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indication that decreasing marginal
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Page 146 and 147:
Page 148 and 149:
Table 7.10: Relationship promotion
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Page 152 and 153:
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7.5.2.8 Variety Seeking Two intrins
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anymore. Therefore it is concluded
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Thus, store loyalty and promotion r
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dummies add up to one. This implies
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Table 7.22: Overview empirical test
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enacting-on-impulse hypothesis and
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Table 7.23: Summary of</str
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Table 7.24: Correlation error coeff
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another category? Or do households
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and unweighted. With respect to the
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164 In general, the average quantit
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Purchase frequency is defined as th
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Table 8.3: Product category rating
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Table 8.4: Pearson correlation betw
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We hypothesized that within impulse
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measure (PU). Referring to Figure A
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Table 8.6: Significant within categ
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looked at this promotional bump dec
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Table 8.8: Differences in promotion
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approach (about one third) are much
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promotions lead to large purchase t
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studies. Promotion
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Promotional extra
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categories revealed that the strong
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degree. When households switch bran
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specific sales promotion reaction m
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increasing (Inman and Winer 1998),
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indirectly from promotional purchas
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quantity downward for potato chips.
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9.2.2.3 Deal Proneness With respect
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204 related to promotion response.
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influenced by out-of</stron
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Andrews, K.Z. (1997), “Do Marketi
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Blattberg, R.C., Eppen, G.D. and J.
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Chintagunta, P. (1993), “Investig
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East, R. and K. Hammond (1996), “
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Gupta, Sachin and P.K. Chintagunta
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Kahn, B.E., Morrison, D.G.and G.P.
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Lattin, J.M. and R.E. Bucklin (1989
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McAlister, L. and E. Pessemier (198
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Petty, R.E. and J.T. Cacioppo (1981
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Shimp, T.A. (1990). Promoti
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Van Trijp, H.C.M. and J.B.E.M. Stee
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Winer, R.S., Bucklin, R.E., Deighto
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APPENDIX A4: Research Overview Tabl
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Table A4.1 continued Article Promot
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� Size of munici
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Table A7.1 continued Symbol Descrip
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Table A7.2: Data legitimacy check (
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Table A7.3: Results binary logistic
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Table A7.4: Results interacting wit
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Table A7.5: Results age and size no
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Table A7.5 continued Variable B S.E
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Table A8.1 continued Impulse BS TA
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Table A8.2 continued Number <strong
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Table A8.3: Relative occurrence and
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Figure A8.2: Decomposing total prom
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interessante aanbieding is. Combina
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aantalmerken in een categorie en im
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ERASMUS RESEARCH INSTITUTE OF MANAG
Page 278 and 279:
Title: Beyond Generics;A closer loo
Page 280 and 281:
Title: Planning and Control Concept
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